IP Sells Temple-Inland Division to Georgia-Pacific for $750M

By Karen Koenig | Posted: 12/13/2012 12:12PM

 

Temple-Inland MEMPHIS, TN - International Paper will sell its Temple-Inland Building Products division to Georgia-Pacific LLC for $750 million in cash. The transaction is expected to be completed in the first quarter of 2013.

The agreement, announced Dec. 13, includes Temple-Inland's 16 wood and panel manufacturing facilities: five solid wood mills, four particleboard plants, two MDF plants, a fiberboard plant and four gypsum wallboard plants located primarily in the southeastern and eastern portions of the United States.

IP acquired Temple-Inland in February 2012. The company said it intends to use the proceeds obtained from the sale to G-P to reduce some of IP's debt.

"While not core to IP's strategy, Temple-Inland Building Products is an industry leader," IP Chairman and CEO John Faraci said in a statement. "I am pleased to have reached a deal that recognizes the strength of the business and provides excellent value for IP shareowners."

“This acquisition is a long-term investment that will create value for our customers and our company,” G-P CEO and President Jim Hannan said in a statement. “These high-quality assets with teams of talented employees are strategically located near large, growing regions of building products customers and will fit well into our existing operations. This will allow us to expand our geographic footprint and enhance our service to new and existing customers.”

 

About the Author

Karen M. Koenig

Karen M. Koenig has more than 25 years of experience in the woodworking industry, including visits to wood products manufacturing facilities throughout North America, Europe and Asia. As Editor-in-Chief of Woodworking Network magazine (formerly Wood & Wood Products), Karen’s primary responsibilities include spearheading the writing, editing and coordinating of the editorial content of the publication, along with the Red Book resource guide and the Red Book online source and supply directory (RedBookOnline.com). She is also a frequent contributor to other Woodworking Network online and print media. She can be reached at kkoenig@woodworkingnetwork.com or Google+.

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